MONEY MARKETTOP STORY

Experts call for re-opening of Savannah Bank

By Niyi Olaoye

Financial experts in the country have called on Federal government of Nigeria to restore the license of Savannah Bank and allow them to re-open for operation saying that  the crisis that has bedeviled the  bank is political.

Depositors of Savannah Bank recently called for the intervention of the Federal Government over the inability of the bank to refund their trapped deposits.

President Progressive Shareholders Association of Nigeria, Mr. Boniface Okezie, during a telephone interview said the issue of Savannah Bank was political and that the Federal Government should restore the license of the bank and allow re-opening for operation.

According to him, Savannah Bank and Heritage Bank which was former Societe Generale Bank were in the same league of troubled banks.

“If Societe Generale Bank could be rescued by the Federal Government, Savannah Bank which had no major problem could also be treated same”.

Okezie said the CBN had caused the bank very endemic damage which is glaring even in their dilapidated assets nationwide.

Commenting on the issue, Managing Director and Chief Executive of APT Securities Limited, Mallam Kurfi Garba said the owners of Savannah Bank were given the option to re-capitalise and start operations which they failed to do.

“The only way the Federal Government can intervene in the depositor’s trapped funds, is for the bank to be either bailed out by the CBN, or to be handed over to the Nigeria Deposit Insurance Corporation (NDIC), for liquidation. NDIC being a regulator can recover loans and sell whatever assets they could lay hands upon and pay off depositors,” Mallam Kurfi said.

Analyst at Proshare had said Savanna Bank showed no obvious or remote signs of distress that could have precipitated its closure.

“The much that was disclosed was that the bank committed some infractions of extant regulations owing to its alleged non-professionalism in aspects of its operations. At the time of its forcible closure, Savannah Bank had nearly 85,000 shareholders, a share capital of N1 billion, and 118 branches. Its depositors were in their hundreds of thousands”

The license was revoked by the Central Bank of Nigeria (CBN) in February 2002. Immediately thereafter, the Nigeria Deposit Insurance Corporation (NDIC) liquidated the bank.

Commenting on the development, Joseph Oladele Sanusi, former CBN governor said the bank was axed for not having enough assets to meet liabilities and did not comply with CBN obligations, adding that the regulators had been unable to prevent further deterioration which caused anomaly in the depositor’s funds.

An investor, international resource associates of London, bought 67.35 per cent of the shares of Savannah Bank in 1999 before a new management took over on 14 April 2000.

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  • With havin so much content and articles do you ever run into any problems of plagorism or copyright violation? My website has a lot of unique content I’ve either written myself or outsourced but it seems a lot of it is popping it up all over the internet without my authorization. Do you know any ways to help prevent content from being stolen? I’d definitely appreciate it.

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  • Today, I went to the beach front with my children. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She put the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!

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  • Howdy just wanted to give you a brief heads up and let you know a few of the pictures aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.

  • Hello, i read your blog occasionally and i own a similar one and i was just wondering if you get a lot of spam comments? If so how do you protect against it, any plugin or anything you can recommend? I get so much lately it’s driving me crazy so any support is very much appreciated.

  • With havin so much content do you ever run into any issues of plagorism or copyright violation? My blog has a lot of unique content I’ve either authored myself or outsourced but it seems a lot of it is popping it up all over the internet without my agreement. Do you know any methods to help protect against content from being stolen? I’d truly appreciate it.

  • Hey there just wanted to give you a brief heads up and let you know a few of the pictures aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different internet browsers and both show the same outcome.

  • Wonderful blog! Do you have any tips for aspiring writers? I’m hoping to start my own blog soon but I’m a little lost on everything. Would you propose starting with a free platform like WordPress or go for a paid option? There are so many choices out there that I’m completely confused .. Any ideas? Bless you!

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  • Good day! Do you know if they make any plugins to help with SEO? I’m trying to get my blog to rank for some targeted keywords but I’m not seeing very good gains. If you know of any please share. Thank you!

  • With havin so much content and articles do you ever run into any problems of plagorism or copyright violation? My blog has a lot of unique content I’ve either written myself or outsourced but it looks like a lot of it is popping it up all over the internet without my permission. Do you know any solutions to help stop content from being ripped off? I’d certainly appreciate it.

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  • Howdy just wanted to give you a quick heads up and let you know a few of the images aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different web browsers and both show the same outcome.

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  • Today, I went to the beachfront with my kids. I found a sea shell and gave it to my 4 year old daughter and said “You can hear the ocean if you put this to your ear.” She placed the shell to her ear and screamed. There was a hermit crab inside and it pinched her ear. She never wants to go back! LoL I know this is totally off topic but I had to tell someone!

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  • Hi there just wanted to give you a brief heads up and let you know a few of the images aren’t loading properly. I’m not sure why but I think its a linking issue. I’ve tried it in two different browsers and both show the same results.

  • Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite some time and was hoping maybe you would have some experience with something like this. Please let me know if you run into anything. I truly enjoy reading your blog and I look forward to your new updates.

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  • I was wondering if you ever considered changing the structure of your site? Its very well written; I love what youve got to say. But maybe you could a little more in the way of content so people could connect with it better. Youve got an awful lot of text for only having 1 or two pictures. Maybe you could space it out better?

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